AM Best Upgrades Credit Ratings of Brookfield Annuity Company

AM Best has upgraded the Financial Strength Rating to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Rating to “a” (Excellent) from “a-” (Excellent) of Brookfield Annuity Company (Toronto, Ontario, Canada). The outlook of these Credit Ratings (ratings) has been revised to stable from positive.

The ratings reflect Brookfield Annuity Company’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

Brookfield Annuity Company’s risk-adjusted capitalization remained at the very strong level in 2023 and through the third quarter of 2024, as measured by Best’s Capital Adequacy Ratio (BCAR). Some volatility is expected due to the volatile nature of deal flow as pension risk transfer (PRT) buy-in and buy-out agreements are finalized. However, AM Best projects the company’s very strong balance sheet strength assessment to remain stable going forward, driven by profitable operations and supported by ample liquidity. Furthermore, the company has developed a good reinsurance program with highly rated partners that serves to strengthen capital management.

Brookfield Annuity Company is well-established as a significant player in the Canada’s PRT space, achieving notable market share ranking second in annual sales. Furthermore, the company has remained profitable over the previous six years with record earnings for year-end 2023. While market share and earnings also are subject to volatility due to the nature of the business line, AM Best expects the company to remain a competitive participant for the foreseeable future.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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